2013 FIRST HALF
RESULTS
February
2013
July27,
31,
2013
1
2013FIRSTHALFRESULTS
Index
1. KEY MESSAGES
2. KEY FIGURES
3. INCOME STATEMENT
4. CASH FLOW
Separadores
Lorem Ipsum
5. BALANCE SHEET
6. SALES PERFORMANCE
7. EBITDA PERFORMANCE
8. OUTLOOK 2013
2
2013FIRSTHALFRESULTS
1. KEY MESSAGES
• Economic environment remains challenging
Economy continues to slowdown in Poland
Conditions in Portugal remain depressed
• The first half performance confirms the capacity of our businesses to
outperform in challenging macroeconomic environments
• Tight cost control across all businesses
• Operations in Colombia advancing in line with the plan (14 stores
opened by June)
• Strong earnings delivery, despite investments in Ara & Hebe
• Guidance for the year confirmed
3
2. KEY FIGURES
2013FIRSTHALFRESULTS
(Million €)
H1 12
CONSOLIDATED SALES
5,011
excluding F/X
EBITDA
NET ATTRIBUTABLE RESULTS
excluding non-recurrent
EPS
NET DEBT
Gearing
+ 12.6%
5,643
+11.5 %
314
excluding F/X
EBITDA MARGIN
H1 13
+ 11.2%
350
+ 9.7%
6.3%
6.2%
152
+ 8.9%
165
157
+4.7%
164
0.24
0.26
311
21.8%
461
32.0%
4
3.1. INCOME STATEMENT Q2
2013FIRSTHALFRESULTS
(Million €)
Consolidated Sales
Q2 13
Q2 12
2,871
Change
2,614
9.9%
612
21.3%
560
21.4%
9.3%
-429
-14.9%
-393
-15.0%
9.3%
EBITDA
183
6.4%
167
6.4%
9.1%
Depreciation
-61
-2.1%
-55
-2.1%
11.9%
EBIT
121
4.2%
113
4.3%
7.8%
Financial Results
-10
-0.3%
-8
-0.3%
19.6%
Profit in Associated Companies
3
0.1%
4
0.2%
-24.6%
Non-Recurrent Items
2
0.1%
-12
-0.5%
n.a.
EBT
116
4.0%
96
3.7%
20.8%
Taxes
-24
-0.9%
-19
-0.7%
25.9%
Net Profit
92
3.2%
77
2.9%
19.6%
Non Controlling Interest
-2
-0.1%
7
0.3%
n.a.
Net Profit attr. to JM
90
3.1%
84
3.2%
7.6%
Total Margin
Operating Costs
EPS (€)
0.14
0.13
7.6%
5
3.2. INCOME STATEMENT H1
2013FIRSTHALFRESULTS
(Million €)
H1 13
H1 12
Change
Consolidated Sales
5,643
Total Margin
1,207
21.4%
1,093
21.8%
10.4%
-857
-15.2%
-779
-15.5%
10.0%
350
6.2%
314
6.3%
11.2%
-122
-2.2%
-110
-2.2%
10.5%
EBIT
228
4.0%
204
4.1%
11.6%
Financial Results
-20
-0.4%
-13
-0.3%
55.5%
Profit in Associated Companies
6
0.1%
7
0.1%
-18.7%
Non-Recurrent Items
1
0.0%
-13
-0.3%
n.a.
EBT
214
3.8%
185
3.7%
15.7%
Taxes
-45
-0.8%
-38
-0.8%
17.5%
Net Profit
169
3.0%
147
2.9%
15.2%
-4
-0.1%
5
0.1%
n.a.
Net Profit attr. to JM
165
2.9%
152
3.0%
8.9%
EPS (€)
0.26
Operating Costs
EBITDA
Depreciation
Non Controlling Interest
5,011
0.24
12.6%
8.9%
6
4. CASH FLOW
2013FIRSTHALFRESULTS
(Million €)
H1 13
H1 12
350
314
Net Interest
-7
-1
Income Tax
-61
-60
281
253
-234
-220
-5
39
0
-12
42
61
EBITDA
Funds From Operations
Capex Payment
Working Capital movement
Others
Free Cash Flow
7
5. BALANCE SHEET
2013FIRSTHALFRESULTS
(Million €)
H1 13
2012YE
H1 12
635
655
641
2,721
2,711
2,520
-1,541
-1,615
-1,547
86
72
120
1,901
1,823
1,735
461
321
311
Non-Controlling Interests
292
290
293
Share Capital
629
629
629
Reserves and Retained Earnings
519
582
502
Shareholders’ Funds
1,440
1,502
1,424
Gearing
32.0%
21.4%
21.8%
Net Goodwill
Net Fixed Assets
Total Working Capital
Others
Invested Capital
Net Debt
8
6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
GROUP
• Solid sales performance in the half year delivering sales growth of 12.6%
• Group LFL grew by 3.9%
• Biedronka, Pingo Doce and Recheio strengthened their competitiveness and
gained market share
Contribution to Consolidated
Sales Growth (Million €)
Contribution to Consolidated Sales Growth (Million €)
505
54
0
18
5,589
54
5,643
5,011
5,011
+11.5%
+12.6%
62.5%
+12.6%
+17.9%
5,643
65.4%
Biedronka
Pingo Doce
Recheio
H1 12 Biedronka Pingo
Doce
Recheio
Others
H1 13
excl. F/X
F/X
H1 13
29.2%
+3.7%
26.9%
7.5%
0.0%
6.6%
H1 12
Others
H1 13
9
6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA(i)
H1‘13 THE CONTEXT: A CHALLENGING SIX MONTHS
-
-
+
Lower Food
Inflation
New
Biedronka
Layout
Slowdown of
consumption
growth
Poor
Weather in
May & June
+
Price
Leadership in
place
+
Increasing
promotional
intensity in
the market
+
Increased in &
out campaigns
Competitive
advantages in
fresh produce
10
6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA(ii)
H1‘13 THE CONTEXT: A CHALLENGING SIX MONTHS
Poland: a slowing economic environment
12%
10%
8%
6%
4%
2%
0%
-2%
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
-4%
GDP Growth
Private Consumption Growth
Food Retail Sales Growth
Source: Central Statistical Office of Poland (GUS). Values presented for GDP and Private
Consumption Growth in Q2 13 are based in the average of last estimates published.
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA(iii)
H1‘13 THE CONTEXT: A CHALLENGING SIX MONTHS
Biedronka: Price leadership in place
120
115
110
105
100
Week 12 Week 13 Week 14 Week 16 Week 17 Week 19 Week 21 Week 22 Week 23 Week 25 Week 26 Week 27
Biedronka
Discounts
Hypermarkets
Supermarkets
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA (iv)
H1’13 THE RESULTS: OUTPERFORMING THE MARKET
LFL Sales Growth
15%
Basket Inflation
5%
Q1 12
Q2 12
H1 12
Q3 12
Q4 12
Q1 13
Q2 13
H1 13
-5%
• Fresh products categories and non food driving the LFL
• Basket inflation remains low, good volume progression in the six months
• Q2 LFL underlying performance impacted by
• Negative calendar comparison (c.2p.p.)
• Bad weather in May and June affecting some categories
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA (v)
H1’13 THE RESULTS: OUTPERFORMING THE MARKET
+
Market Share
increase of
2.3p.p. in 12
months*
50.4
17.1
50.6
17.2
49.7
17.2
50.8
51.6
53.3
53.0
53.2
Biedronka
18.1
18.3
18.2
19.4
19.5
Lidl
Netto
Polomarket22
Carrefour SM+HM
Tesco SM+HM
Real
Auchan
Kaufland
Rossman
I-II '12
III-IV '12 V-VI '12 VII-VIII '12 IX-X '12 XI-XII '12 I-II '13
III-IV '13
* 2012-2013 Bimonthly GfK Value Shares of main retailers at Total FMCG
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
BIEDRONKA (vi)
H1’13 THE RESULTS: OUTPERFORMING THE MARKET
• Total sales grew 18%
• Biedronka represents 65% of Group’s sales
• 62 new stores in the six months
SALES (Million €)
3,133
160
345
3,638
54
+17.9%
+16.1%
H1 12
LFL
New Stores/
Revampings
H1 13 excl.
F/X
3,693
F/X
H1 13
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
PINGO DOCE (i)
Environment in Portugal remains difficult
4%
2%
0%
-2%
-4%
-6%
-8%
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
GDP Growth
Private Consumption Growth
Food Retail Sales Growth
Source: Portuguese Statistic Institute (INE). The estimated GDP Growth in Q2 2013 was published by the Catholic University’s
Center for Research on the Portuguese Economy. No estimates were published for Private Consumption growth in Q2 13.
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6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
PINGO DOCE (ii)
Pingo Doce delivers excellent performance in a challenging environment
LFL SALES GROWTH (EXCL. FUEL)
1,462
3.7%
2.4%
SALES (Million €)
39
15
1,516
2.2%
+3.7%
-0.8%
-0.8%
-2.6%
H1 12
LFL
New Stores/
Revampings
H1 13
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
• Strong LFL growth despite negative basket inflation in the half year
• Price reinforcement initiated in May 2012 is delivering strong results
• Market share increased by 1.3p.p. in the first 6 months of the year
17
6. SALES PERFORMANCE
2013FIRSTHALFRESULTS
RECHEIO
• LFL recovering from soft start to the year
• Market conditions remain difficult in both Traditional Retailers and HoReCa
sectors
• Recheio increases market share
LFL SALES GROWTH
SALES (Million €)
3
375
2.6%
375
-3
1.0%
0.0%
-0.1%
-2.9%
-2.9% -2.8%
H1 12
LFL
New Stores/
Revampings
H1 13
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
18
7. EBITDA PERFORMANCE (i)
2013FIRSTHALFRESULTS
• Group EBITDA increased by 11.2% (+15.5% excl. investment impact in Ara
& Hebe)
• New business investments impact of €21m in the half year
• Both Biedronka and Pingo Doce driving the profit growth
CONTRIBUTION TO CONSOLIDATED EBITDA GROWTH (Million €)
41
10
-1
314
-4
345
5
-15
+11.2%
+9.7%
H1 12
Biedronka Pingo Doce
Recheio
Others
350
New
H1 13 excl.
businesses
F/X
F/X
H1 13
19
7. EBITDA PERFORMANCE (ii)
2013FIRSTHALFRESULTS
• Margin development for the
Group impacted by the
dilution from investments
in new businesses
EBITDA MARGIN
7.7 7.8
4.4
Biedronka
4.9
Pingo Doce
H1 12
5.7 5.4
Recheio
H1 13
6.3 6.2
Group
• Group margin excluding
new businesses up by 20bps
(H1 13 vs. H1 12)
• Cost control and strong
sales performance in both
Biedronka and Pingo Doce
drove EBITDA margin
improvement in these
businesses
20
2013FIRSTHALFRESULTS
8. OUTLOOK
We confirm the outlook provided with our 2012 full-year’s results:
• Double digit sales growth, at constant exchange rate
• EBITDA growing in line with sales
• Solid net earnings growth despite the investment in Colombia
• Capex €600m- €700m (c.70% invested in Biedronka)
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2013FIRSTHALFRESULTS
Disclaimer
Statements in this presentation that are forward-looking statements are based on current
expectations of future events and are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by such statements. The risks and uncertainties
relate to factors that are beyond Jerónimo Martins’ ability to control or estimate precisely, such as
general economic conditions, credit markets, foreign exchange fluctuations and regulatory
developments.
Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to
update the information contained in this release or to notify a reader in the event that any matter
stated herein changes or becomes inaccurate.
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2013 FIRST HALF
RESULTS
February 27, 2013
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